How to Get Financial Aid: A Primer

Once you've applied for admission to the colleges and universities on your list, it's time to look at how financial aid can help you finance your educational expenses. Here are three questions typically asked by college-bound students looking for financial aid:
  • What types of financial aid are available?
  • Where does my funding come from?
  • How do I begin the application process?

What Types of Financial Aid Are Available?

The following types of financial aid are available to finance your education:
  • Grants - A grant is free money and does not have to be repaid as long as you meet the specified requirements for receiving it--maintaining a certain enrollment status and GPA and making satisfactory progress toward your degree or certificate are some possible requirements.
  • Scholarships - This popular award is also free money and can be either need-based, merit-based, or both. Like grants, scholarships do not have to be repaid as long as you meet the conditions set by the donor. Scholarships are often awarded based on major, GPA, academic or extracurricular interests, even where you grew up or attended high school.
  • Loans - You generally need to repay all educational loans. Most educational loan programs offer low interest rates and deferred repayment while you are in school. Loan forgiveness programs may also be available for some loans if you pursue certain service professions, such as teaching and law enforcement.
  • Work-Study - Work-study programs allow you to work to pay your educational costs. Programs such as Federal Work-Study and graduate and research assistantships may be available to you depending on school, location, and major.

Where Does My Funding Come From?

Your financial aid funding comes from one or more of the following sources:
  • Federal government - the Department of Education administers over $78 billion in student financial aid each year through a variety of federally-funded programs.
  • State governments - residents can benefit from aid programs funded by their state.
  • Colleges and universities - schools use financial aid in the form of grants, scholarships, loans, and work programs to persuade you to attend their institution.
  • Private sources - community and national service organizations, private donors, and company tuition programs offer grants and scholarships on a local or national level. Additionally, private lenders offer educational loans.

How Do I Begin the Application Process?

Follow these steps to begin the financial aid application process:
  • Contact your prospective schools for general financial aid information as well as information specific to the school.
  • Complete the Free Application for Federal Student Aid (FAFSA), either on the Web (http://www.FAFSA.ed.gov/) or on paper.
  • Be sure to make necessary corrections to the FAFSA and submit any requested documentation by individual school deadlines.

Learn Your Deadlines

Your school's financial aid office provides you with specific deadlines that you must meet in order to complete your financial aid application at each school you may attend. Different schools have different deadlines by which you have to complete your application, and the information may change each year, so be sure to contact each school for the most current information.

Complete Your FAFSA

Complete the FAFSA, either on paper or on the Web. Even if you're completing a FAFSA on the Web, print out a FAFSA worksheet and complete it before repeating the process online. The FAFSA Web site lists the documents that can help you complete the FAFSA. It's a good idea to apply early (optimum time is as soon as possible after January 1 of the fall term you plan to attend) and make corrections later if necessary. For details, contact your financial aid office.

Finalize Your Details

When you have completed and submitted your FAFSA, you will receive a Student Aid Report (SAR) from the processing center. Correct your FAFSA, if necessary, before any deadlines indicated by your school. Additionally, each financial aid office may ask you to submit additional information. Respond to these requests as soon as you can to ensure that your aid application is complete.

Each school should notify you of your financial aid eligibility before you accept an offer of admission. This allows you to compare financial aid offers before making your final admission decision. If you don't receive eligibility information in a timely manner, contact the school's financial aid office.